Microsoft Signs Multi-Billion Dollar Deal with Nvidia-Backed CoreWeave, Former Ethereum Miner, for AI Computing
Jessie A Ellis Jun 01, 2023 23:19
According to CNBC, Microsoft is set to expand its footprint in the artificial intelligence (AI) sector with a multi-billion dollar deal with CoreWeave, a cloud computing startup once known for its Ethereum mining operations.
According to CNBC, Microsoft is set to expand its footprint in the artificial intelligence (AI) sector with a multi-billion dollar deal with CoreWeave, a cloud computing startup once known for its Ethereum mining operations. Microsoft's investment follows the recent AI boom sparked by the introduction of OpenAI's ChatGPT.
While specific deal figures have not been released, insiders confirm that the contract could be worth billions over several years. This move comes as Microsoft continues to deploy chatbots across its services, pointing to an increasing need for advanced computing infrastructure.
Founded in 2017, CoreWeave had recently secured $200 million from hedge fund Magnetar Capital, boosting its valuation to $2 billion. Previously, the firm had raised $221 million in funding, with notable participation from Nvidia.
CoreWeave positions itself as a cost-effective alternative to legacy cloud providers, offering high-performance Nvidia GPUs at a claimed 80% less expense. Amid surging demand for AI infrastructure, CoreWeave provides an additional conduit for Microsoft to tap into Nvidia's resources.
Notably, Nvidia's stock price has soared by 170% this year, driven in large part by rising demand for data center services related to generative AI and large language models. Nvidia's GPUs are at the heart of these sophisticated AI systems, including OpenAI’s GPT-4 model, a key component of ChatGPT.
CoreWeave's pivot from Ethereum mining to AI infrastructure provision underscores the broader shift within the tech industry towards AI and blockchain technologies. As companies continue to harness the transformative power of AI, CoreWeave's strategic alliance with Microsoft stands to influence the evolving AI landscape significantly.
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